Gordon Marsden: The question of what is or is not a secret is a matter for a lot of discussion, no doubt. What is not a matter for discussion is the fact the Government did not put the mechanism for this increase in the Bill until the last day before the summer recess started. In my view, they did that quite deliberately in the hope it would be smothered in public interest by the other 28 statements that went round. It is a common practice of Governments to do that, but it is reprehensible. It is particularly reprehensible when we now know that the consequences of it are that a number of universities have implemented it for existing students, and not simply for students enrolling from 2017-18.
As this subject is clearly irritating and frustrating the Minister quite a lot, I will move on to talk about the issues that affect the relationship between teaching quality and fees. We are going to talk about the detail of the TEF in regards to clause 25, so again I will comment in more general terms. The National Union of Students has made it clear that it firmly opposes statutory links between teaching quality and the level of fees being charged for that teaching. My hon. Friends and I made that clear on Second Reading. I remind colleagues of what I said in the summer Adjournment debate, when I came to inform the House that this had been done in what I regarded as an irregular manner. I said:
“I think that the way the Government have dealt with this matter is thoroughly reprehensible… We engaged in a vigorous discussion”
on the Bill, as to
“whether it was right to link fees to the Teaching Excellence Framework, but at no time during that process did Ministers take the opportunity to say anything about the issue.”—[Official Report, 21 July 2016; Vol. 613, c. 1056.]
I am saying that today because I want it to be put on record that we are talking about the discrepancy in procedures.
It is a question not just of increasing the fees, but of increasing the loans by 2.8% to match that increase in fees. That will have all the knock-on effects on students from disadvantaged backgrounds. Apart from the principled point that the NUS is making, as the Minister knows there is at least a degree of scepticism about the outcome for universities of linking the TEF with tuition fees, and  scepticism on the part of one or two or them about linking it. Inevitably, however, students are on the hard end of this and they want to know what the evidence is for the measure.
The NUS rightly says:
“Since tuition fees were trebled in 2012, there is no evidence”
as a direct result of that process
“to suggest that there was a consequential improvement in teaching quality.”
It goes on to say that, broadly,
“There has been no change in student satisfaction with the teaching on their course, while institutions have instead been shown to spend”
in many cases
“additional income from the fees rise on increased marketing materials rather than on efforts to improve course quality.”
We will want to return the question of what this money will be used for when we talk about the obligations laid on new providers. Of course, if they sign up for the full-fat version of the fees, they will have to abide by the teaching excellence framework as well.

Jo Johnson: I rise to bring to the hon. Gentleman’s attention that there are many in the sector who can see that this will do exactly what he wants: it will enable universities to reinvest in teaching methods. I want to  draw to his attention the words of Professor Steve Smith, the highly respected vice-chancellor of Exeter University who said:
“At a time when our institutions face significant cost pressures the TEF presents us with an opportunity to invest in our students’ futures and the long-term economic success of our country, and to be recognised for outstanding teaching at the same time.”

I need to touch what the situation will be if leading universities opt out of the TEF, which was the subject of an article in Times Higher Education at the beginning of September. Reference was made to various issues, including Russell Group universities perhaps not wanting to take part because:
“They fear that taking part in the TEF will become such an administratively burdensome activity that the cost of participation will become so expensive that it will outweigh the value of an inflationary increase in tuition fees.”
We should be concerned about that not only because it is causing Russell Group vice-chancellors to agonise but because it threatens both the future of the TEF—I repeat, we want to see a proper TEF succeed—and future access for the sorts of students whom every member of the Committee, no matter whether they are Government or Opposition, wants to see at university. We all want to improve access to participation.
It is extremely important that process in this matter is not a repetition of the precedent from before the summer recess. The issues are extremely important. People are so frustrated about the teaching excellence framework not being debated on the Floor of the House and in the context of the Bill, because that will enable the Government to evade detailed scrutiny of all the issues and of that process subsequently.
We have already seen how the Government did not choose to address the 2.8% increase in fees on Second Reading. We seek an assurance that if there are any major issues related to the TEF, including what the Government wish to do or not to do on fees, it will not simply be left to ministerial guidance or, with all due respect, shuffled down to a Delegated Legislation Committee, which will not allow all Members of this House to engage with the important and potentially very beneficial development of properly recognising teaching in our universities and higher education institutions.

Paul Blomfield: The Minister will acknowledge that the quotes that is giving—he may have reservations about them—are in relation to the fee system. The OECD has made no comment on the fees link.

Gordon Marsden: I do not want this to turn into an argument about semantics, but the reality is as my hon. Friend mentioned earlier: in this schedule, we are being asked to buy a pig in a poke. We do not know what the shape of it is. When the Select Committee said that, it  was about the principle and the concept, not about the detail, which the Minister is either not in a position or not willing to tell us about.

Jo Johnson: Such incentives will play a powerful role in rebalancing universities so that they focus more on teaching than ever before. We do not have marginal funding allocated towards teaching in our funding system for universities at the moment and this will be a powerful driver of change in that respect.
It is right that only providers that demonstrate high-quality teaching will be able to access tuition fees up to an inflation-linked maximum fee cap. We expect the TEF to deliver additional income for the sector of £16 billion by 2025 and it will also allow providers to reinvest in teaching methods that work. As the Sutton Trust said,
“we need to shake the university sector out of its complacency and open it up to a transparency that has been alien to them for far too long. It is good that they are judged on impact in the research excellence framework, and that the teaching excellence framework will force them to think more about how they impart knowledge to those paying them £9000 a year in fees.”
The fee link has been welcomed not just by individual vice-chancellors but by the sector. The hon. Member for Sheffield Central challenged me to reference a body representative of the sector and I am very happy to do so. Universities UK said:
“Allowing universities to increase fees in line with inflation, on the condition of being able to demonstrate high-quality teaching through an effective TEF, is a balanced and sustainable response to these two objectives.”
Let me reassure the Committee that, as I set out in the White Paper, our proposed changes to the fee limits accessible to those participating in the TEF will at most be in line with inflation—fee caps will be kept flat in real terms. Let me also reassure the Committee that, should the upper or lower limits be increased by more than inflation, which is certainly not our intention, it will require regulations subject to the affirmative procedure, which require the approval of Parliament. That is in line with the current legislative approach to raising fee caps and we have no desire to depart from those important safeguards, so Parliament will therefore continue retain strong controls over fees.